PainPA

penny for your thoughts... If the plan document has langauge for the rollover program (uner $1k cash or $1k-$5k roll), are there any concerns for a plan sponsor not adhering to the plan document and getting these out fo the plan?

These are great comments and good to hear what else everyone is experincing. Not sure what other TPA's with all the terms in a plan but we work with the plan sponsors to remove anyone that can be (forced) and act dilligently with those over $5k. What I mean by that is that we just do not provide an admin binder with the forms for the plan sponsor to use. That process might work better with a larger 100+ ee plan where they might have a HR person working on it. But it just doesn't work for the dmaller plan market. However, all the plans I have been transferring/capturing over the last 2 years have so many term participants that need to be cleaned up. Just isn't right. The last one I picked up has so many terms that I basically sold the plan by saying if we get rid of all these it will drop you below the large plan audit requirement. That is all they needed to hear. Thanks for everyone's cmments.

A plan sponsor would like to charge the TPA per participant fee only to those terminated and will not take money out of the plan and cannot be forced becuase they are over $5k. The document I use has a section for plan admnistrator elections and how fees are applied. If this is changed and the new SPD is sent out to the Term ee's. Am I running up against anything? Thoughts? Concerns?

Thank you... I looked at the plan doc and I cannot find anything. I even went back to the online checklist to see if I missed selecting something to produce the language. I will have to review again. Thank you for your insight on this.

Thanks... I think I understand but let me restate a little better. The employee was given proper notices. However he did not take action until he saw it out of his paycheck and also when the vendor sent him something. The employee now realizes he should have paid attention to the notice that was provided. As a result he completes the form to get his money back within the 90 day timeframe. However I am pulling this info in from the vendor and a small match is being calculated at year end. Does this change your answer for the employee getting the small match? and I guess I need to figure out how to get it from automatically calculating the match in my pension system withour having to review each one.

If an automatic enrollment notification was missed by the employee and he/she subsequently had the money returned within the proper timeframe. Is that 1 pay roll for that employee required to receive a minimal match? What am I missing to not have to give a small year end match?

Agreed... Thank you for the replies... makes sense when thinking like the IRS... However, why would anyone NOT do combo filing for 2009 and 2010...

I guess I have too much holiday booze in my system that is clouding up my thinking... If I combine the filings on the 2009 which I have done, list the plan year a 1/1/2009-12/31/2009 and not voluntarily file any ADD's for someone that left in 2010. I still do not understand how they would know if I missed the 2010 filing when I decide to file 2011 later. There will be a skip in years for 2010. I thought by filing the 2009 we would place the year as 1/1/2009-12/31/2010 on the top of the form.

How does the IRS know if I am filing a Combined 2009 and 2010 filing? The instructions I am reading doesn't seem to differentiate. What am I missing?

There is a plan count requirement each year, plus the size of plans matter. Being a small TPA, that amount could be $0. Let me retract what I said earlier that the inability to determine the amount is the main problem... the main problem is that an RIA, also owning a part in a TPA firm, is being paid as an advisor and is receiving indirect compensation from the plan via these TPA payments. That is what we are beign told is a prohibitive transaction.

Same situation applies to both firms... The inability to determine the actual amount of Installation Allowance seems to be the problem. The cite is yet to be disclosed to us

We are an RIA firm that also owns part of a TPA firm. The question is dealing with the John Hancock Forum IA (Installation Allowance) program. We hired a prominent ERISA attorney for an opinion about the IA payments a TPA receives from John Hancock. We were told the IA payments must be 100% offset to the quoted fees if not, any fees above those must be credited back or reimbursed to the client... otherwise it is a prohibitive transaction becuase we are a RIA. Another TPA firm were told a way to collect these fees without reimbusement because they had the same questions. Not sure were to tunr. We cannot be the only RIA firm that owns a TPA that might be facing this. Just curious if there is anyone else facing this and have found any resolution or how they are handling the fee disclosure. Is there a way we can obtain a private letter ruling or somehting in the same realm to hang our hats on? Any suggestions would be greatly appreciated.

Have a standard 401k plan whereby a trustee is asking for the availabilty to purchase an equity membership in a golf course with his participant allocations. How do I shoot this down or accomodate? What are some of the pitfalls?

When is a SAS 70 required? Is there any regulating body? Any cites? e.g. A recordkeeper who is the TPA and the Broker (does not have a 6 or 7, sells thru a life license). Plan assets eventually end up with a major insurance provider. Plan Sponsor says they write the bi-weekly contribution checks to the TPA company name (Did not confirm this as of yet).

I work in the governmental 457b and 401a area. Advisors I have worked with are always concerned about the inability to get equal pricing when a governmental agency has a 401a money purchase and a 457b deferral plan. The recent Rev Ruling 2011-1 will allow for the comingling of the plans into 1 trust (Contract). I have worked with the following vendors and I know they cannot handle. There are work arounds but still the pricing is basically seperate and the 457b is always the drag on the much larger 401a. This is a huge fiduciary concern for the advisors I work with. Does anyone know or can suggest a vendor that can handle these plans under one contract?

The way it is that right now I have to enter plan specs to create a document at FT William, and I also need to enter the same plan specs in Datair for the daily administration. The way I understand the sales pitch is that if I decided to use Datair documents that I do not need to enter the plan specs in both locations. Do I have that right?... I did not look into that in greater detail

I have been using them for about 2 years... I really like the online process and it works well for me... The checklist does have edit checks that help and a help menu.... They are really good about answering questions and the response is usually immediate... I have been thinking about moving to something like Datair since that is the software I use and the only reason would be that both systems can be integrated with duplicating efforts.

just to further clarify... She doesn't want to put the money back in the plan... she said she "spent it" already... The plan sponsor knew she was rehired but I was not notified. So when the Profit Sharing was contributed in Sept 2010 for the 2009 plan year it was automatically distributed (in the same manner as the Dec 2009 distribution-taxable) by John Hancock. My question was since the auto distribution happened when she was still employed, and was not allowed the distirbution, what are the ramifications of the distirbution while still employed.

An employee was termed in April 2009. Was entitled to a safe harbor contirbution for those 4 months. The employer always extends and makes the contribution in September 2010. The employee takes a 100% distirbution of her account around Dec 2009. She is rehired in June 2010. (did not know that) The contirbution is made in September 2010 and John Hancocks system is set to distirbute in the same manner as the previous distribution if you do not let them know in 7 days (not sure of the time frame). The plan sponsor or TPA does not stop it and the money is distirbuted while she was employed (direct deposit to hert account on file with John Hancock). What are the ramifications of the distirbution?

that what I thought.... why ask it on the form... if it is not a qualifying asset it is not elgiible to file an SF before it become a loan. just questioning myself finishing off the SF's becuase I read it in a book

can someone verify the abilyt to file a 5500-SF for 2009 even if the plan answered YES to loans on the 2008 Schedule line 3f Asssume the plan(s) are with John Hancock and not a money purchase plan. a colleague point to the 5500 preparers manual as stating (PRACTICE POINTER) that if you answered YES and entered an amount on line 3f (participant loans) of the 2008 Schedulke I, it most likely does not meet the requirements for the simplified reporting. Any one have a clarification/comment on that?

Is the EFAST2 help line only for EFAST2 filings? Did they wipe out the EFAST1 automated recording entries? I have a similar situation but I see the 2008 on FreeERISA but the EFAST2 status check line says it was not received. Other than the 866-463-3278 is there another quick way to check if a filing was received other than FreeERISA? What am i missing? To answer your original question I have fought (really the client fought) becuase a client did not want to pay the $750 and they eventually won but does not seem worth it. Also, the plan was audited 2 months later.... coincidence?

We use the 1-866-go-efast # to check the filing status of a potential client. This number was always updated within a few weeeks of the filing. It seems that the old EFAST is not going to merged into the EFAST2 filings. e.g. I have a few potential clients that have a plan year end 7/31/2009 and I am trying to check the 5500 status. Also when I check some of my plans that I know were filed and have confirmations and are already on FREEERISA, the status check line states it has not been received in the EFAST2 system. But I am checking the EFAST1 system. Any advice out there for an immediate status check that it was received? or where the old one resides?

General TPA habits question... What do other TPA's provide in communications to HCE's for the coming year in a plan that fails? e.g. Do they send a list of HCE's to the plan administrator. or Do they produce a letter and send directly to the participants? assume current year testing

good points... The plan does allow for IRA's as most of my advisors bascially say they will not pass on any money coming into the plan even though it is a plan sponsor request. How would someone know if the IRA has noncompliance? better yet how does a TPA protect against this? there is a form from teh vendor that has the trustee sign off that all is on good order. I guess the answers are what you mentioned previously is that make it simple and not allow any at all... or just conduit....